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A 6-year project has an initial fixed asset investment of $25,620, an initial NWC investment of $2,440, and an annual OCF of -$39,040. The fixed
A 6-year project has an initial fixed asset investment of $25,620, an initial NWC investment of $2,440, and an annual OCF of -$39,040. The fixed asset is fully depreciated over the life of the project and has no salvage value. Required: If the required return is 13 percent, what is the project's equivalent annual cost, or EAC?
$-45,766.13
$-38,901.21
$-43,477.82
$-48,054.43
$-30,492.06
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